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Thirty small communities in Connecticut (population near 10,000 each) gave an average of 138.5 reported cases of larceny per
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Answer #1

We have the known population standard deviation so we will use standard normal distribution

n = 10000 T = 138.5 0 = 42.1

The (1 - \alpha) confidence interval for population mean with known population SD is

(IFMOE)

(138.5+ MOE)

MOE (margin of error) = Critical value * Standard error

= Z_{\alpha/2} * 42.1 V10000

Where Z_{\alpha/2} can be found using normal distribution tables or excel function 'normsinv'

Confidence levels (a) 90% (b) 95% (c) 99%
\alpha 0.10 0.05 0.01
\alpha/2 0.05 0.025 0.005
Critical value 1.6449 1.96 2.5758

Margin of error

(the margin of error increases with increase in \alpha)

0.00692 0.00825 0.01084
Lower limit 138.4931 138.4918 138.4892
Upper limit 138.5069 138.5082 138.5108

Width (length)

(Width is increasing)

0.01385 0.01650 0.02169

(d) As the confidence level increases the margin of error increase (option 3)

This is because increasing the level allows for more accuracy and makes it stricter. Thus it incorporates more values so that the possibility of the true population mean lying in the interval is increased.

(e) As the confidence level increases the confidence level length increase (option 2)

This is because increasing the level allows for more accuracy and makes it stricter. Thus it incorporates more values so that the possibility of the true population mean lying in the interval is increased.

t-dist

df = n - 1 = 22 - 1

df = 21

The \alpha = 1 - 0.95 = 0.05

ta/2,df = 10.025,21

to = 2.0796 = 2.08 (using t-dist tables)

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